Investor

Presentation
August 2024
Safe harbor & forward looking statements
This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of
1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements
include, but are not limited to, statements related to: the Company’s financial and operating guidance and expectations; the Company’s business plan,
trajectory, expectations, market leadership, competitive advantages, operational and financial results and metrics (and the assumptions related to the
calculation of such metrics); the Company’s momentum in its business strategies including its ESG efforts, expectations regarding market share, total
addressable market, customer value proposition, market penetration, financing activities, financing capacity, product mix, and ability to manage cash flow
and liquidity; the growth of the solar industry; the Company’s financing activities and expectations to refinance, amend, and/or extend any financing
facilities; trends or potential trends within the solar industry, our business, customer base, and market; the Company’s ability to derive value from the
anticipated benefits of partnerships, new technologies, and pilot programs; anticipated demand, market acceptance, and market adoption of the Company’s
offerings, including new products, services, and technologies; the Company’s strategy to be a storage-first company; the ability to increase margins based
on a shift in product focus; expectations regarding the growth of home electrification, electric vehicles, virtual power plants, and distributed energy
resources; the Company’s ability to manage suppliers, inventory, and workforce; supply chains and regulatory impacts affecting supply chains; the
Company’s leadership team and talent development; the legislative and regulatory environment of the solar industry and the potential impacts of proposed,
amended, and newly adopted legislation and regulation on the solar industry and our business; the ongoing expectations regarding the Company’s storage
and energy services businesses and anticipated emissions reductions due to utilization of the Company’s solar systems; and factors outside of the
Company’s control such as macroeconomic trends, bank failures, public health emergencies, natural disasters, acts of war, terrorism, geopolitical conflict, or
armed conflict / invasion, and the impacts of climate change. These statements are not guarantees of future performance; they reflect the Company’s
current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties and
other factors that may cause actual results, performance or achievements to be materially different from expectations or results projected or implied by
forward-looking statements. The risks and uncertainties that could cause the Company’s results to differ materially from those expressed or implied by such
forward-looking statements include: the Company’s continued ability to manage costs and compete effectively; the availability of additional financing on
acceptable terms; worldwide economic conditions, including slow or negative growth rates and inflation; volatile or rising interest rates; changes in policies
and regulations, including net metering, interconnection limits, and fixed fees, or caps and licensing restrictions and the impact of these changes on the
solar industry and our business; the Company’s ability to attract and retain the Company’s business partners; supply chain risks and associated costs;
realizing the anticipated benefits of past or future investments, partnerships, strategic transactions, or acquisitions, and integrating those acquisitions; the
Company’s leadership team and ability to attract and retain key employees; changes in the retail prices of traditional utility generated electricity; the
availability of rebates, tax credits and other incentives; the availability of solar panels, batteries, and other components and raw materials; the Company’s
business plan and the Company’s ability to effectively manage the Company’s growth and labor constraints; the Company’s ability to meet the covenants in
the Company’s investment funds and debt facilities; factors impacting the home electrification and solar industry generally, and such other risks and
uncertainties identified in the reports that we file with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements used
herein are based on information available to us as of the date hereof, and we assume no obligation to update publicly these forward-looking statements for
any reason, except as required by law. All guidance information contained in this presentation was provided on August 6, 2024 in the 2Q 2024 earnings
release. The company assumes no obligation to update such guidance and the guidance is effective only as of August 6, 2024, not the date of this
presentation.
Sunrun is OLD WAY
powering a Centralized control, single
points of failure, expensive,
polluting, limited consumer
customer-led engagement in energy

revolution to
clean, affordable
and locally-
generated
energy. NEW WAY
A network of decentralized,
decarbonized, democratized,

We are building a affordable clean energy with

consumers

more resilient electric

grid and doing it at a
massive scale and at
a rapid pace.

Investor Presentation 3
Sunrun Overview Our Compelling Value Proposition
Sunrun is powering a customer-led revolution to
VALUE TO ➔ The majority of customers save 5-45% in the first
clean, affordable and locally-generated energy, and year.(1) We have delivered more than $1.3 billion in
CUSTOMERS
doing it at massive scale and rapid pace. savings for our customers since 2007.(2)

➔ Storage provides premium power, including backup

Formed in 2007, Sunrun pioneered the residential solar capabilities to enable customers to power through
storms.
energy as a subscription service. We provide a solar
energy service with fixed pricing under 20- or 25-year VALUE TO ➔ Typically 20- or 25-year customer relationship
subscription agreements that generate recurring, which can be monetized beyond core solar energy
SUNRUN
product.
contracted revenue for multiple decades. We have sold
our solar service in 22 states, DC & Puerto Rico. ➔ Typically 20- or 25-year value stream is financed
upfront to fully cover creation costs and generate
cash immediately.
Sunrun has a leading customer acquisition platform,
customer experience capabilities, and extensive financing VALUE TO ➔ Residential solar and storage is a cost-effective way
SOCIETY to modernize the country’s infrastructure to make it
experience, all of which drive significant barriers to entry more resilient, affordable and environmentally
and the opportunity for high incremental returns. sustainable.

➔ Sunrun’s systems have prevented greenhouse-gas

(GHG) emissions totaling 18.0 million metric tons
of carbon dioxide equivalent (CO2e), an amount
984,000+ Customers comparable to eliminating more than 46.1 billion
passenger-vehicle miles.(3)
7.1 Gigawatts Networked Solar Energy Capacity
➔ The solar industry employs ~263,000 workers in
1.8 Gigawatt hours Networked Storage Capacity America and is estimated to be one of the fastest
growing segments of the economy.(4)
$1.5 Billion Annual Recurring Revenue

See Appendix for Glossary of Terms. Customers, Networked Solar Energy Capacity, Networked Storage Capacity and Annual Recurring Revenue is rounded and as of June 30, 2024.
(1) First year savings is based on 3 months trailing data as of June 30, 2023 for Solar-only. Actual savings may vary by customer.
(2) For all Customers through December 31, 2023.
(3) Based on Sunrun's estimates and United States Environmental Protection Agency's Greenhouse Gas Equivalencies Calculator as of December 31, 2023. Does not include Vivint Solar.
(4) Interstate Renewable Energy Council’s (IREC) National Solar Jobs Census 2022.

Investor Presentation 4
Massive & underpenetrated
opportunity
Even assuming a 16% average annual industry growth rate for
the next 10-years leads to ~18% penetration of U.S. houses.
Our strong value proposition supports a much greater number.

Number of Homes with Solar

17.6m

4.5m
0.2m

2012 Today 2032E

% Penetration of 88m
Addressable Homes (1)
0.3% ~5% ~18%

Much higher penetration proven

In markets where the value proposition was evident first, like
Hawaii and California, penetration has reached 31% and 22%,
respectively, and growth continues.(2)

(1) Today’s housing stock estimate is based on the U.S. Census 2021 American Community Survey by State using occupied
single-unit housing using average state occupancy estimates. Number of homes with solar is based on EIA Form 861M
Residential PV Customers (February 2024). Estimated 2032 market penetration assumes housing units grow at 0.7% (Census
data). Sunrun internal estimates for 2023 and beyond.
(2) State penetration data uses EIA Form 861M Residential PV Customers (through February 2024) and housing stock uses the US
Census 2021 American Community Survey by State using occupied single-unit housing using average state occupancy
estimates.

Investor Presentation 5
Sunrun is the #1 residential market leader
Operating scale and strong
network effects provide A disciplined strategy
significant competitive and long track record
advantages
of growth has resulted
in a leading market
share position(1)
With approximately 15% market
share across the entire residential
solar market, and 55% market
share(2) of subscriptions (‘TPO’ or
solar leases & PPAs)

0.5%

And yet remains

<1% of total U.S.
residential electricity
$230 billion market(3)
annual spend(2)

Sunrun US Residential Electricity Sales

See Appendix for Glossary of Terms.

(1) Wood Mackenzie Research, Sunrun’s Solar Energy Capacity Installed, SunPower’s reported Residential MW through 4Q 2023 as reflected in supplementary metric sheet released concurrent with earnings and Wood Mackenzie
estimate for Q1 2024, and Sunnova’s reported MW Deployments during the period for Lease, PPA and Loan customers, as reflected in supplemental materials released concurrent with earnings. Trailing twelve months as of Q1 2024.
(2) Wood Mackenzie Research, US residential solar finance update H1 2024.
(3) Sunrun’s 2022 ending Network of Solar Energy Capacity at 14% utilization for illustrative purposes. 2022 Residential Retail Sales (MWhrs) of Electricity from EIA. Annual spend based on EIA data of sales of electricity to residential
customers for 2022.

Investor Presentation 6
Utility pricing is increasing and reliability is declining. Solar and
storage technology is improving and becoming lower cost.
➔ US Utilities requested $18 billion in rate hikes last year, the third straight year of Retail Electricity Price Increases Over
record requests. For the 12 months through May 2024, the price of electricity The Past Two Years(6)
nationwide has risen at nearly double the rate of consumer prices overall.(1)
➔ In December 2023, CPUC approved PG&E’s rate increase of 19.6%(2) in
California, effective January 1, 2024.
➔ In 2023, the major U.S. utilities spent over $160 billion in capital investments,
exceeding depreciation expense by 2.5x.(3)
➔ Yet, people are increasingly facing outages from wildfires, hurricanes and major
storms. The average annual number of weather-related power outages has
increased by almost 80% over the last decade.(4)
➔ More than 70% of America’s transmission lines and large power transformers
are at least 25 years old, and utilities will need to spend an exorbitant $2.2
trillion on infrastructure upgrades during the next 20 years in order to keep our
system up and running. These costs will ultimately be passed to consumers.
➔ With the expected capex trends, significant increases are likely even if
wholesale prices fall.(5)

Cost of Utility Energy Has Been Increasing(7) Utility Spending Accelerates Trend(8)

Capital Expenditures ($ billions)

(1) Wall Street Journal, “Why Californians Have Some of the Highest Power Bills in the U.S.” (August 2024).
(2) PG&E General Rate Case (GRC) Application (April 2023).
(3) Bloomberg: Company Reported Capex and Depreciation in 2023.
(4) Climate Central: “Surging Power Outages and Climate Change,” (September 2022).
(5) Projected retail rates based on historic actual CAGR adjusted for current market conditions and wholesale rates based on 2% inflation.
(6) Energy Information Agency. Average price per KWhr of electricity for the U.S. residential sector. Rate reflects changes from May 2022 to May 2024. Includes Sunrun’s top 15 markets.
(7) Energy Information Agency. Average price per KWhr of electricity for the U.S. residential sector. Rate reflects the Compounded Average Growth Rate (CAGR) from 2005 through 2023.
(8) Total company functional spending of U.S. Investor-Owned Electric Companies. Source: EEI Industry Capital Expenditures with Functional Detail (July 2023).

Investor Presentation 7
Solar and battery costs have declined
The costs of solar modules
and batteries have declined Cost of solar modules -92%
Cost of batteries -89%
significantly over the last ten
years and market research
predicts that these trends will
continue.(1)(2)

Market researchers forecast the cost of installed solar panels will continue to
decline long-term by 34% while the cost of batteries declines 64% over the
next 10 years.(2)

(1) Historic solar costs: Data prior to 2020 uses Bloomberg New Energy Finance Survey Multicrystalline Silicon Module Overall Average Spot
Price; Starting in 2020, data source is PV Infolink Standard Monocrystalline Silicon Module Price from Bloomberg; Historic battery cost estimates
according to Bloomberg New Energy Finance Annual Battery Survey (November 2023).
(2) Projected Cost of Panels and Batteries: Bloomberg New Energy Outlook 2019.

Investor Presentation 8
 The grid is increasingly
unreliable and battery
storage is a solution
From devastating wildfires and forced outages in California to
hurricanes and major storms across the East Coast, people are
facing more outages every year.

Power outages affect millions(1)

In December 2022, frigid winds from winter storm Elliott knocked
out power for more than 1.6 million homes and businesses across
19 states.

In August 2020, a heatwave and unexpected centralized fossil fuel

power plant failures crippled California’s power grid, leading to
rolling blackouts affecting 2 million people.

In August 2020, nearly 14 million people across the East Coast lost
power in Hurricane Isaias.

In April 2020, 9.4 million people lost power in North Carolina,

South Carolina, Texas and Alabama due to a major storm.

Sunrun’s backup storage offering is a clean, reliable and

long-term solution for blackouts. It can backup critical In October 2019, PG&E shut off power to more than 3.4 million
circuits and recharge when the sun shines, so customers people in California to prevent their lines from sparking destructive
can power through even multi-day power outages. wildfires.

In many places, customers can get solar and storage for

less than or equal to what they pay for electricity today.
(1) Power Outage U.S. Major Events, California Braces for More Blackouts as Heat Wave Persists, Bloomberg, August 2020.

Investor Presentation 9
Sunrun is the trusted provider
Sunrun’s Vision
to enable the transition to ➔ Sunrun aims to become the preferred clean
energy provider to power customers’ lives.
clean energy We will integrate solar, battery storage,
electrification and distributed power plant
offerings into a smart solution for each home
and community.
➔ Full home electrification enables
decarbonization and increases the need for a
service provider. More fuel switching results
in larger systems, which have high
incremental returns to Sunrun.

1 Rooftop solar power

2 Batteries

3 Electric vehicle chargers

4 Smart Circuits

5 Heat pumps for heating & cooling

6 Heat pump water heater

7 Smart thermostat

8 Induction cooktop

9 Smart bulbs

10 Smart plugs
Investor Presentation 10
Electric vehicle adoption
increases energy needs &
enhances the value of our
offering
➔ Electric vehicle energy needs expected to grow at an 18% CAGR as EVs
reach >70% of new vehicle sales.(1)

➔ More than 80% of EV owners say they would consider installing solar
panels at their homes, or already have them.(2)

➔ 30-40% of people who own EVs have installed rooftop solar.(3)

➔ Most EV owners do more than 80% of their charging at home and need ~3
kW additional solar capacity.(3)(4)

➔ ~1.2 million electric vehicles were sold in the US in 2023, up 46% from
2022.(5)

➔ In May 2021, Sunrun partnered with Ford to serve as the preferred installer
of Ford Intelligent Backup Power for the Ford F-150 Lighting. Sunrun
offers the installation of the 80-amp Ford Charge Station Pro and the Home
Integration System, along with providing options for solar and storage
systems.

➔ Customers will need to equip their home with the 80-amp Ford Charge
Station Pro and Home Integration System to unlock bidirectional power
flow and future energy management solutions. The Home Integration
System—designed and developed together with Ford—can be purchased
exclusively through Sunrun.

(1) Wood Mackenzie “Electrification Impact on North America’s Electricity Demand” report published June 2022.
(2) Green Car Reports, August 2015. Electric Car Drivers Tell Ford We'll Never Go Back To Gasoline.
(3) Clean Technica, December 2019. EV & Rooftop Solar Ownership Report.
(4) Energy.gov, Batteries Charging And Electric Vehicles.
(5) Cox Automotive Electric Vehicle Sales Report (January 2024).

Investor Presentation 11
The Sunrun network can deliver distributed power plants
to transition to a decentralized power grid
➔ Home solar and batteries are more flexible and efficient than traditional centralized infrastructure. Utilities spend
more than $130 billion per year in capital investments and we believe $13 billion could be replaced by distributed
resources.(2)
➔ Sunrun can provide valuable grid services from our fleet of networked solar and storage systems, mitigating the
need for utilities to invest in additional infrastructure, driving benefits for all users of the grid, while also providing
incremental recurring revenue opportunities for Sunrun and incremental value to our customers for participating in
these programs.
➔ Sunrun has now installed more than 116,000 battery systems representing almost 1.8 GWhrs of Networked
Storage Capacity.

Distributed Provides clean, cost-effective peaking California Load Duration Curve Highlights
Power Plants capacity. Opportunity(1)
The traditional energy system is built to accommodate peak
capacity, which is reached only a tiny fraction of the year.
Virtual Avoids substation overhauls by
Distribution dropping excess load when needed
Capacity locally.
14 GWs of system
capacity is used less
Virtual Provides generation and reliability in than 5% of the time.
Transmission congested areas where new transmission
Capacity lines are difficult to build.

See Appendix for Glossary of Terms.

(1) California ISO, Historical EMS Hourly Load for 2022.
(2) Utility capex Edison Electric Institute's Wall Street Briefing published April 2023. Rocky Mountain Institute “The Economics of Demand Flexibility” published in August 2015 estimates $13 billion or more of spend
could be met from flexible, distributed resources.

Investor Presentation 12
 Leading customer acquisition
capabilities

Direct to Experts in consultative engagements

Home

Affiliate Leverage tools and brand to offer

leading product solutions to customers
Partners

Direct Best in class direct to consumer

Marketing

Sunrun’s diverse customer Strategic National brands & retailers such as

acquisition channels drive Lowe’s, Costco and Ford deliver broad
reach advantages today and
Partners reach & increased brand awareness
investments in brand and
customer experience will
augment advantages over time. Referral 984,000+ Sunrun Customers today and
growing(1)
Network
(1) Customers figure is as of June 30, 2024.

Investor Presentation 13
Strong customer value Typical Sunrun Solar Service
proposition across the Agreement Characteristics(2)

U.S. ➔ Price per unit of energy (KWhr): ~$0.19

➔ Solar System Size: ~7.5 KWs (~7,500 watts DC)

Customer value propositions include utility bill ➔ Estimated Annual Solar Production: ~9,935 KWhrs (~1,332
KWhrs per KW per year)
savings, sustainability and peace of mind along
➔ Annual escalator: average of 2.5% with a range of 0% to 3.5%
with battery backup power and energy control with
➔ Contract Duration: typically 25 years
our storage product.
➔ Solar Power Purchase Agreement (PPA) or Lease
➔ Production Guarantee & Warranty
SAVINGS
➔ All Service Included
The majority of customers save 5% to 45%
in the first year(1)
Average Savings By Region For Solar Offering(3)
SUSTAINABILITY
Protect our planet

BACKUP
Protection against blackouts

ENERGY CONTROL
Use your energy when it’s most valuable

See Appendix for glossary of terms.

(1) First year savings is based on 3 months trailing data as of June 30, 2023 with an average 2.5% escalator for
PEACE OF MIND Solar-only. Actual savings may vary by customer.
(2) Represents average Lease and PPA customers in 2Q2022, excluding pre-paid leases but includes 0%-3.5%
World-class install & 20- to 25-year no escalator monthly payments, both solar and solar + battery customers. Excludes multi-family systems.
(3) State average pricing per KWhr of electricity shown and represents average prices for installations during 2Q 2024
hassle service with predictable pricing for Sunrun’s solar-only offering. Incumbent utility rates reflect data as of June 2024 from Genability by utility, where
available, and are presented on a weighted-average basis.
14
Increasing customer value proposition and margin
opportunity by expanding offering

TRADITIONAL SUNRUN SOLAR SUNRUN RECHARGEABLE SUNRUN ENERGY MANAGEMENT

GRID SERVICE SOLAR BATTERY SYSTEM AND DISTRIBUTED POWER PLANT

Value Potential Progress

Current Net Subscriber Value ~$12,000+ ➔ Expect to grow from Q2

➔ Initial pilot completed with initial “early look” offer; initial results indicated likely
Renewals at end of initial subscription term ~$3,000 to ~$4,500 per customer realization exceeding values currently embedded in our GEA metric today

Repowering systems with new equipment to meet ~$5,000 to ~$15,000 per ➔ Optimizing offers for customers to consider upgrading systems to meet
growing energy needs of home customer increased energy needs at time of renewal or earlier
Installing batteries on existing customers to provide ➔ Over 1,000 orders so far through 2Q 2024 and orders are growing
~$3,000+ per customer
energy resiliency rapidly.
➔ Over a dozen operating distributed power plant programs across the
country
Grid services (distributed power plants) ~$2,000 or more per customer
➔ Largest distributed power plant operating in CA; launched offering with
Tesla in Texas and more to follow
Home electrification offerings, such as electric
➔ Thousands of orders for advanced electric vehicle charging
vehicle charging infrastructure $100 to $1,000+ per customer
infrastructure, including Ford Charge Station Pro

Ultimate customer value should significantly exceed initial contracted Net Subscriber Values

Investor Presentation 15
Post-contract customer values & renewal assumptions
embedded in metrics may be conservative
➔ Advantaged position compared to competitors: The
marginal cost of delivering energy during the renewal period
will likely be lower than a new system (whether installed by Contracts are written to typically renew annually after the
us or a competitor). Further, units of electricity do not initial contract term at 90% of the prevailing utility rate.
become obsolete, thus it is unlikely customers will feel Renewal values in metrics assume customers renew at a
compelled to upgrade to the “next version.” discount to the rate in effect at the end of the initial contract.
➔ No cross-selling / upselling / repowering assumed: We
have not included any other intangible benefits associated
with the customer relationship such as expanded systems,
batteries, or ancillary services such as electric vehicle
charging systems. With increased electrification (including
electric vehicles), it is likely consumers will want more
electricity, not less, and Sunrun will be in a
cost-advantaged position to provide this option.
➔ Remaining asset value beyond renewal assumption:
Sunrun assumes only 5-years of renewals following a
25-year contract, or a 30-year total customer relationship,
despite our solar assets’ useful lives extending 35 years or
more, as determined by independent engineers.
➔ Contracts auto-renew at a discount to utility rates,
which may escalate much faster: The renewal portion of
our reported metrics assumes that 100% of Subscribers
renew at 90% of the contractual PPA rate in effect at the
end of the initial contract term. In reality, customer
contracts are written to typically automatically renew at a
rate equal to 90% of the prevailing utility rate. This means
that, assuming utility rates escalate at a faster rate than our
typical contract escalators, approximately ~50% of our
customers could not renew and Sunrun would still
effectively realize the renewal value presented in our
reported metric.(1) See Appendix for Glossary of Terms.
(1) Assumes starting discount to utility of 20% with a 4% annual escalation of utility prices compared to our portfolio
average of 2% for Sunrun customers.

Investor Presentation 16
 First product in ecosystem is an integrated home battery,
inverter and distributed power plant software system

Next-generation offering Advanced grid service

Lunar Energy turns homeowners into capabilities
active members of the energy economy Lunar Energy also acquired Moixa
by giving them the freedom to generate, while in stealth mode. UK-based
store and control their own clean energy Moxia is the leading global
and share it with their communities. software company for distributed
Lunar Energy expects to commercialize a energy resources (DER)
next-generation integrated home battery, management and its GridShare™
inverter and software system with software is a core component of
advanced grid services capabilities, in Lunar Energy’s integrated system.
the coming quarters. GridShare software is already
deployed at scale across 35k
homes (330 MWhr of batteries) via
Sunrun is a key strategic and ITOCHU in Japan.
commercialization partner
In addition to being an investor in Lunar
Energy, Sunrun has preferential access to
Experienced team
the technology. Lunar Energy will make Lunar Energy has built a team of
its offering available in the coming over 250 employees globally, most
Sunrun has quarters and will serve the entire industry.
Sunrun co-invested with SK Group (and
of whom are a mix of hardware,
firmware and software engineers

invested in Lunar affiliates) to form Lunar Energy in August

2020. Sunrun invested $75 million
designing and building energy
products in its Mountain View, CA
and London, UK offices. Kunal
Energy to (including $10m of contributed services)
in August 2020 and an additional $75
Girotra, CEO & Founder, previously
led Tesla’s Energy business.
accelerate home million in March 2022 and $5 million in
the fourth quarter of 2023. For more information, visit

electrification www.LunarEnergy.com

at scale 17
Sunrun is Since 2007, Sunrun’s systems have prevented
greenhouse gas (GHG) emissions totaling

making an impact 18.0 million metric tons

of carbon dioxide equivalent (CO2e)
Our approach is to benefit all of our
stakeholders: our customers, our employees,
and the communities in which we operate, as We generate positive carbon returns
well as our business and financial partners. Because Sunrun’s systems have a lifespan of 30 years or
longer, they prevent the release of harmful GHGs for
95% of their lifetime.
Sunrun’s Impact commitments & goals
Positive Carbon Return (28 years+)
1. Sunrun is committed to mitigating the impacts of
climate change.
2. Sunrun is committed to building a safe, diverse,
fair, and equitable workforce.
3. Sunrun is committed to improving energy equity
and environmental justice. Carbon Payback Period (2 years)
For All Scope 1, 2 & 3 Emissions
In 2023, Sunrun was honored with numerous Sunrun supported GRID Alternatives, a
awards for our commitment to fostering a better non-profit serving low-income
workplace, advancing our business, and communities, in installing more than
contributing positively to our planet. 5,500 home solar systems
➔ Fast Company: Brands That Matter over the past few years. These GHG Emissions & Carbon Intensity
➔ Built In: The Best Places to Work installations are projected to save
➔ Military Times: Best for Vets Employers customers more than $140 million in
➔ Institutional Investor: Best Investor energy costs over their lifetimes.
Relations Team for Alternative Energy
➔ Comparably’s Best Company for As part of our commitment to being global
Women citizens and doing business legally and
➔ Comparably’s Best Company for ethically, we adopted a robust Vendor
Career Growth Code of Conduct on January 1, 2019.
➔ Comparably’s Best Company for Sales
Sunrun announced a commitment to
We seek to reduce emissions and the total develop a minimum of
carbon intensity of our operations; to recycle 100 megawatts of solar
100% of our equipment at each of our locations; on affordable multi-family housing, where
and to bring solar energy to underserved 80% of tenants fall below 60% of the area
communities. median income, over the next decade in
California. This will directly benefit
50,000 families. Please see Sunrun’s 2023 Impact Report, available on the company’s Investor Relations
website for more information, including information on the calculations and statistics
referenced above: investors.sunrun.com/esg
18
Expanding moat
with technology
capabilities
We have invested over $185 million
in R&D(1) to usher the change to a
distributed energy system while
building more entry barriers

PLATFORM TECHNOLOGY
Sunrun leads the industry with advanced solar system
design, monitoring, and customer engagement tools.
Sunrun is investing in advanced energy service
capabilities.
Moat increasing with growing customer engagement in
energy selection, advanced regulatory constructs (such
as time-variable pricing), and energy storage integration.

(1) Cumulative Research and Development Expenses from 2015 through 2Q2024.

Investor Presentation 19
Sunrun is led by seasoned professionals
with extensive industry experience

MARY POWELL PAUL DICKSON DANNY ABAJIAN JEANNA STEELE

Chief Executive Officer President & Chief Revenue Officer Chief Financial Officer Chief Legal Officer &
Chief People Officer

Patrick Kent CHANCE ALLRED LYNN JURICH EDWARD FENSTER

Chief Field Operations Officer Chief Experience Officer Co-Founder & Co-Founder &
Co-Executive Chair Co-Executive Chair

Investor Presentation 20
 Measuring
Value Creation
21
Nearly two decade ➔ 984,000+ CUSTOMERS(3)
operating history ➔ Networked Solar Energy Capacity of 7,058 MWs(4)

delivering consistent ➔
➔
14% y/y growth in Networked Solar Energy Capacity(5)
Networked Storage Capacity of 1.8 Gigawatt hours(6)
growth and value
creation

Systems Perform
Sunrun provides performance guarantee
for peace of mind

Strong Customer Experience

A+ Rating with the Better Business Bureau

Customers Pay Their Bills

~1% cumulative loss rate on billings(1)
See Appendix for Glossary of Terms.
(1) Data includes assets originated by Sunrun Inc. and its channel partners through June 30, 2024. Losses include uncollected
recurring billings 5 months after invoice date, write downs, and appeasement credits.
Transferring Service Is Easy (2) As of December 31, 2023 and excludes Vivint Solar. Recovery percentage is equal to the (i) the sum of (a) the remaining
customer agreement cash flows after the service transfer discounted at 6% and (b) prepayments received in connection with
the service transfer, divided by (ii) the remaining customer agreement cash flows before the service transfer discounted at 6%.
~100% service transfer Net Subscriber Based on analysis of completed service transfers for monthly customers; Recoveries >100% arise from prepayments.
(3) Customers figure is as of June 30, 2024.
Value recovery rate(2) (4) Networked Solar Energy Capacity as of June 30, 2024 and gives pro forma effect to our acquisition of Vivint Solar from 2012
to 2019 and includes Vivint Solar in 2020. 2007-2011 reflects legacy Sunrun standalone because Vivint Solar was founded in
October 2011.
(5) Represents year over year growth in Networked Solar Energy Capacity from 2Q23 to 2Q24.
(6) Networked Storage Capacity as of June 30, 2024.

Investor Presentation 22
Q2 Net Subscriber Value was $12,394, with additional ITC
adder value expected
➔ 24,984 Subscriber Additions with Net Subscriber Value of $12,394 using a 6% discount rate, resulting in Total Value
Generated of $310 million in Q2.
➔ These figures include the benefits of the low-income and energy communities ITC adders but do not include the Domestic
Content ITC adder.
➔ We present metrics using a 6% discount rate to enable ease of comparison across periods, in addition to providing a
sensitivity table. We currently see an asset-level cost of capital of approximately 7.5%. Pro-forma for a 7.5% discount
rate, Subscriber Value was $44,291, leading to an adjusted Net Subscriber Value of $7,075 and Total Value Generated of
$177 million.

$49,610 $37,216
Subscriber Value Creation Cost Upfront
Installation costs Current capital costs are ~7.5% for
“full stack” debt raised against the
PV6%
$3,569 assets we originated in the quarter.
Renewal Upfront This reflects observed debt capital
per S&M
PV6% costs for senior debt and subordinated
subscriber debt and is calculated as follows:
(O&M costs)
Upfront 4.51% Average 7-yr treasury rate
G&A during Q2
+2.05% Senior debt credit spread
PV6% = 6.56% Senior debt rate
Customer payments Upfront +0.98% Impact on average when
(Platform Services Margin) incorporating subordinated
PV6% $46,041 debt as part of capital stack
per = 7.5% Weighted average
(O&M costs)
subscriber $12,394
Net Subscriber Value
PV6%
Tax equity $7,075
$3,569 renewal
Net Subscriber
Upfront Value @ 7.5%
State rebates & prepayments
$8,825 contracted $2,419 renewal

PV6% $4,656 contracted PV7.5%

Subscriber Creation Net Subscriber Net Subscriber Value

Value Cost Value pro-forma at 7.5%
Q2 average subscriber system size was 7.3 KWs. discount rate
See Appendix for glossary of terms and accompanying notes.
23
Strong normalized Net Subscriber Values result in
upfront financing proceeds exceeding Creation Costs
We raise non-recourse debt against Contracted Subscriber Value, allowing us to convert a significant portion of value to cash
upfront while continuing to build our long-term stream of recurring cash flows

Renewal
net of O&M
(6% discount rate) Future Cash Flows

Upfront Cash
Value of Contracted
Proceeds from Senior Margin
Post-Tax Equity and
O&M Cash Flows and Subordinated Debt
(6% discount Monetization
rate)

Installation
S&M
Proceeds Proceeds from Tax G&A
from Tax Equity, Equity, Upfront (-) Platform Margin
Upfront Rebates, Rebates, Prepayments
Prepayments

Subscriber Upfront (Creation Costs) Cash Present Value of Future

Value Cash Margin Cash Flows

See Appendix for glossary of terms.

Investor Presentation 24
 Net Earning Assets increased to $5.7 billion
➔ We have ~$15.7 billion in Gross Earning Assets, which is our measure of the
present value of cash flows from customers over time.
➔ Projected cash flow from customers plus cash, less total debt and pass-through
obligations represents $5.7 billion in present value, which we call Net Earning
Assets. Net Earning Assets includes both recourse and non-recourse debt and
total cash.
➔ Net Earning Assets excludes other assets, such as Inventory ($353m as of 2Q24)
and a portion of systems currently under construction but not yet recognized as
deployed and therefore not yet reflected in Gross Earning Assets.
➔ Existing assets are financed with fixed-rate debt or floating-rate debt where the
vast majority of the base rate exposure is hedged with interest rate swaps. As
such, adjusting the discount rate applied to the entire fleet of existing assets with
current financing costs applicable to new asset originations is not appropriate.
Net derivative assets (total derivative assets less total derivative liabilities) totaled
$259 million at June 30, 2024 for $3.6 billion in notional amount of interest rate
swaps.

($ in millions) 2Q23 3Q23 4Q23 1Q24 2Q24

Discount Rate used to calculate Gross Earning Assets 6% 6% 6% 6% 6%

Gross Earning Assets Contracted Period $9,437 $10,064 $10,802 $11,545 $12,051

Gross Earning Assets Renewal Period $3,122 $3,235 $3,364 $3,492 $3,641

Gross Earning Assets $12,559 $13,299 $14,167 $15,038 $15,692

(-) Recourse Debt & Convertible Senior Notes ($946) ($912) ($932) ($1,050) ($1,043)

(-) Non-Recourse Debt ($8,658) ($9,326) ($9,740) ($10,098) ($10,919)

(-) Pass-through financing obligation ($300) ($297) ($295) ($270) ($1)

(+) Pro-forma debt adj. for debt within project equity funds(1) $868 $857 $852 $844 $905

(+) Total cash $921 $952 $988 $783 $1,042

Net Earning Assets, as reported $4,444 $4,574 $5,040 $5,247 $5,675

(1) Because estimated cash distributions to our project equity partners are deducted from Gross Earning Assets, a proportional share of the corresponding project level non-recourse debt is deducted from Net
Earning Assets, as such debt would be serviced from cash flows already excluded from Gross Earning Assets. See Appendix for glossary of terms and accompanying notes.

25
Three 10% ITC adders enhance unit economics
➔ These ITC adders will make solar more affordable and accessible to a broader consumer population.
➔ We have operationalized receipt and accounting for the energy communities & low-income adders.
➔ A meaningful mix of our deployments in the coming quarters should qualify for the domestic content adder, at
which point we will begin including the value in our reported metrics.
➔ In Q2, the weighted average ITC was approximately 35%, reflecting approximately half of Subscriber
Additions qualifying for a 10% adder on average.
➔ We expect our weighted average ITC to be around 45% in 2025.
➔ 1% of increased weighted average ITC realization equates to approximately $60 million increase in finance
proceeds.

➔ Each adder represents an incremental 10% ITC or

Energy Operationalized Starting in Q3 2023 >$3k per subscriber, except for the low-income
Communities Approximately 1/3 of Subscriber mix qualifies today multifamily housing adder, which is 20%.
10% Additional ITC ~$100 to $150 million annual run rate value
➔ ITC adders are only available to commercial
taxpayers and thus only benefit the
subscription-service model, where Sunrun has
Operationalized & Actively Participating in >50% market share, as opposed to
Quota Allocation Process customer-purchased and loan-financed systems,
Low-Income
10% Additional ITC Over 1/4 of current footprint eligible for 10% Adder, which are not eligible.
(or 20% for but subject to quota-allocation process & ➔ Direct-to-home sales are well situated to capitalize
Multifamily Housing) regulations on this opportunity through geo-targeting for
~$50 to $100+ million annual run rate value eligible areas.
➔ Value realization will likely be shared between
Sunrun, customers, and other stakeholders.
Expect to be Operationalized in Late 2024
Domestic Vast majority of Subscription mix possible;
Content discussions active with domestic manufacturers
10% Additional ITC Potential $200 to $500 million+ annual run rate
value

26
We are enjoying tailwinds from improving product mix

Subscription Mix Increasing Subscriber Mix(2)

➔ Sunrun’s Subscription model is advantaged in the market;

Sunrun has approximately 55% share of the Subscription
market.(1)
➔ Current and forthcoming ITC Adder benefits, which are only
available under the Subscription model, should accelerate
this trend further in the quarters ahead.
➔ Sunrun’s accessible Subscription model with no upfront costs
provides peace of mind in a rising utility and interest rate
environment.

Storage Attachment Rates Accelerating

Storage Attachment Rate on New Installations
➔ Sunrun has now installed more than 116,000 solar and
265 MWhrs of Storage Capacity Installed in Q2,
storage systems representing almost 1.8 GWhrs of stored a 152% increase compared to the prior year, as
energy capacity. Storage attachment rates increased to attachment rates reached ~54%
~54% in 2Q.
➔ Storage attachment rates vary significantly by geography, with
Hawaii and Puerto Rico at ~100%, California ~86%(3) , and
Texas at 46% and increasing, with the rest of the country at
~5% for Q2 installations.
➔ We expect attachment rates to remain around this level for the
remainder of the year but Storage Capacity Installed to grow
rapidly.
➔ Systems with backup storage are significantly accretive to Net
Subscriber Values, adding several thousand dollars.

(1) Wood Mackenzie US Residential Solar Finance Update H1 2024.

(2) Subscriber Mix represents megawatts of Solar Energy Capacity Installed for Subscribers as a percentage of total megawatts of Solar Energy Capacity Installed during the period.
(3) California storage attachment rate in the Investor Owned Utilities (IOU) territories.

27
 Cash Generation guidance of $350 to $600 million in 2025
Cash Generation represents the change in Sunrun’s total unrestricted cash balance, less any increases in recourse debt or
issuance of equity (or plus any decreases in repayment of recourse debt or stock repurchases). Cash Generation provides credit
for non-recourse asset-level financing and tax credit monetization used to fund growth. Cash Generation is provided in the model
posted to Sunrun’s investor website and is derived entirely from our GAAP financial statements.

Reiterating Q4 2024 Cash Generation guidance of

$50 million to $125 million (or $200 million to $500 million annualized)

Introducing 2025 Cash Generation guidance of

$350 million to $600 million

Key Sensitivities

Battery Attachment Rates

ITC Realization Cost of Capital
1% change in battery attachment rates
1% of weighted average ITC realization 25 bps change in realized capital cost
equates to approximately a $10 million
equates to approximately $60 million equates to approximately $60 million
change

Finance proceeds flow through to Cash Generation and can be moderated by customer
pricing and sales compensation levels, especially over the long-term
Typical timing-related considerations assumed in Cash Generation:
➔ Incentive Monetization Timing: Assumes slight improvement in the terms associated with ITC transferability funds from current achievement. LMI
allocation process and final approvals obtained without extraordinary delays.
➔ Capital Markets Timing: Assumes normal cadence and timing of project finance execution.
➔ Other Working Capital: Local program incentives and rebates received as expected, inventory managed to target levels.

Note: Guidance provided on August 6, 2024 in the 2Q 2024 earnings release. The company assumes no obligation to update such guidance and the guidance is effective
only as of August 6, 2024, not the date of this presentation.
See Appendix for glossary of terms, including Cash Generation.

28
Sunrun has demonstrated 15+ years of consistent capital
markets execution
➔ We have a strong track record of attracting low-cost capital from diverse sources. Our access to capital markets puts us in a
position to offer more advantageous financing options to consumers while creating long-term value for investors.
➔ We have demonstrated industry-leading execution throughout our history, with the market and rating agencies increasingly
recognizing both the high quality of residential solar assets as well as our track record as a sponsor.

$6 billion in Maturities Extended or Capital Arranged Thus Far In 2024

YTD 2024

Recourse Working Capital Facility

Extended maturity from January 2025 to November 2025 (with provision to extend the maturity to March 2027, subject to
certain conditions). We reduced the size from $600 million to $447.5 million, with an option to upsize the facility to up to $448 million
$477.5 million prior to September 30, 2024.

2030 Convertible Note placed (including $8.2m shoe); use of proceeds included purchasing part of the 2026 Convertible
note with continued repurchases expected $483 million

Non-recourse Senior Revolving Warehouse Facility

Size increased from $1.8b (+$550m) and maturity extended from April 2025 to February 2028; Upsized again in July 2024 $2,630 million
by $280m to $2.63b.

Non-Recourse Senior ABS & Subordinated Debt $1,503 million

Tax Equity >$900 million

Repurchasing 2026 Convertible Notes: To date, we have repurchased over $266 million of these notes. Approximately one third of the notes
now remain outstanding. We will continue to be disciplined and selective with repurchases.

Project finance runway

➔ Closed transactions and executed term sheets provide us with expected tax equity capacity to fund over 313 megawatts of
projects for Subscribers beyond what was deployed through Q2.
➔ Sunrun also has $1,089 million in unused commitments available in its non-recourse senior revolving warehouse loan at the end
of Q2, pro-forma to reflect a recent upsize, to fund approximately 373 megawatts of projects for Subscribers.
See Appendix for glossary of terms.

29
Sunrun has achieved strong Subscriber Values
➔ Sunrun has increased pricing and adjusted go-to-market approaches multiple times since 2022 to respond to inflation and higher
interest rates. High utility rate inflation across the United States has provided us headroom to increase pricing while still delivering
a strong customer value proposition.
➔ Higher cost of capital has reduced the amount of proceeds Sunrun can obtain upfront against the value of deployed systems,
with advance rates declining in recent periods. Current advance rates are estimated to be approximately 77% to 82% as
measured against Contracted Subscriber Value calculated using a 6% discount rate.
➔ Each ~100 bps change in cost of capital results in ~3% change in cumulative advance rate.

Average system sizes declined 3%, from 7.5

KW in Q1 to 7.3 KW in Q2; Subscriber
Values increased on a per-watt basis
Subscriber Values
$50,776
$50,302 ($6.78/watt)
$49,610
$47,068 ($6.52/watt) ($6.81/watt)
$44,727 $3,917
($5.87/watt) ($6.02/watt) $3,772 $3,569
$3,681 $46,858
Renewal Subscriber Value $3,809 $46,530
$46,041
$40,918 $43,387

Contracted Subscriber Value

Approximate Cumulative Advance Rate(1) on Contracted

Subscriber Value during period (6% discount rate) ~79-84% ~76-81% ~77-82% ~77-82% ~77-82%
Approximate Capital Cost During Period ~7.25% ~8.0% ~7.5% ~7.6% ~7.5%
Approximate Proceeds Raised(2)
(Advance Rate x Contracted Subscriber Value) ~$33,300 ~$34,100 ~$37,000 ~$37,250 ~$36,600
Creation Cost(3) ($32,406) ($36,038) ($36,857) ($38,885) ($37,216)

2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024

See Appendix for glossary of terms.
(1) Cumulative Advance Rate is the sum of actual and anticipated proceeds from tax equity, state rebates & incentives, customer prepayments and non-recourse debt raised against assets in period divided by Contracted Subscriber Value.
(2) Approximate proceeds raised is presented at the midpoint of presented Cumulative Advance Rate range. Figure presented is rounded.
(3) Note that Creation Cost excludes certain costs, including stock based compensation (SBC) and R&D expenses, and does not reflect traditional working capital items (e.g. inventory, receivables etc).

30
Outlook Full-year 2024:
➔ Reiterating Cash Generation guidance of $50 million to
$125 million ($200 million to $500 million annualized) in
Q4 2024.1
➔ Storage Capacity Installed is expected to be in a range
of 1,030 to 1,100 Megawatt hours, representing growth of
approximately 86% at the midpoint, an increase from the
prior guidance range of 800 to 1,000 Megawatt hours.
➔ Solar Energy Capacity Installed is expected to decline
approximately 15% compared to the prior year, in-line
with the low-end of the prior guidance range.
Year-over-year growth is expected to be positive in Q4.

3Q 2024:
➔ Storage Capacity Installed expected to be in a range of
275 to 300 Megawatt hours, reflecting approximately 64%
growth at the midpoint compared to the prior year.
➔ Solar Energy Capacity Installed is expected to be in a
range of 220 to 230 Megawatts, reflecting approximately
17% sequential growth from Q2 at the midpoint.
➔ Cash Generation is expected to be positive.
➔ Net Subscriber Value expected to be materially higher in
the second half of 2024 relative to Q2 levels.

Full-year 2025:
➔ Introducing Cash Generation of $350 million to $600
million.1
Note: Guidance provided on August 6, 2024 in the 2Q 2024 earnings release. The company
assumes no obligation to update such guidance and the guidance is effective only as of
August 6, 2024, not the date of this presentation.

See Appendix for glossary of terms.

(1) See page 28 for our Cash Generation targets and assumptions underpinning our targets. 31
Appendix
GAAP Income Statement
Customer Agreements and Incentive Revenue is
comprised of ongoing revenue from customers under
long-term agreements, amortization of prepaid
systems, and incentive revenue. The value of the
Investment Tax Credits (ITC) are recognized as
Incentive revenue, when monetized using a
pass-through financing structure.

The majority of Customer Agreements and

Incentives COGS is depreciation (~$532m total
depreciation & amortization in 2023). This also
includes operating & maintenance costs and
non-capitalized costs associated with
installation-related activities.

A large portion of our Sales & Marketing spend is

expensed in period, while it relates to customers
with ~20 or ~25 years of contracted revenue.

The Loss Attributable to Non-Controlling Interests is

primarily driven by our monetization of the
Investment Tax Credit (ITC) with our Tax Equity
partners with partnership flip structures. Assume a
tax investor contributes about ~$1.8 per watt in
cash and then immediately receives back a tax
credit worth $1.3 per watt. After receipt of the tax
credit, the investor’s remaining non-controlling
interest in Sunrun’s solar facility is now only $0.5
per watt, which is repaid over about 6 years
through cash distributions and depreciation
deductions. Like the elimination of a liability, the
reduction in the tax investor’s non-controlling
interest from ~$1.8 per watt to ~$0.5 per watt is
income to Sunrun common shareholders. Because
Sunrun received this $1.3 per watt in cash through
a partnership, this income is accounted for under
GAAP using the hypothetical liquidation at book
Reflected in Sunrun’s 2023 GAAP results are two large one-time non-cash charges:
value (HLBV) method as a “loss attributable to
3Q 2023: $1.2 billion Goodwill impairment non-controlling interests,” rather than revenue.
4Q 2023: $58.7 million non-cash charge related to Sunrun’s investment in Lunar Energy

See Appendix for glossary of terms.

33
GAAP Balance Sheet

Deferred revenue is primarily

Customer Prepayments which
are recognized over the life of
the contract, typically 20 or 25
years ($873.1 million balance of
Payments Received Under
Customer Agreements at the end
of 2023).

$9.7 billion of our debt is

non-recourse project debt and
solely secured by the solar assets
(at the end of 2023).

$295 million of pass-through

financing obligations (at the end
of 2023) represent obligations to
investors who receive the
Investment Tax Credit (ITC) and a
portion of cash flows from funds
predominantly under an inverted
lease structure.

Non-controlling interests
represent our Tax Equity (under
partnership flip structures) and
Project Equity investors’
interests in our funds.

34
GAAP Cash Flow Statement
Cash Flow From Operations is negative as
25-30% of our Creation Costs are expensed in
the period, while revenue is recognized over 80
periods or more. Additionally, we raise Debt and
Project Equity to fund our growth, which covers
CFO and CFI.

These investments are the capex for our solar

energy systems. Approximately 70-75% of our
Creation Costs are capitalized, the rest are
expensed in-period on our income statement.

We raise non-recourse project debt on assets,

which is serviced by cash flows from contracted
customer payments.

Proceeds from pass-through and other

financing obligations primarily represents Tax
Equity investors in inverted lease structures,
where the investor receives the Investment Tax
Credit (ITC), certain depreciation attributes, and
a share of cash flows. Following adoption of
ASC 606 in 2018, proceeds received related to
ITC revenues are treated as operating cash
flows.

Proceeds from NCI represent investments from

(1) Tax Equity investors in partnership flip funds,
where they receive the Investment Tax Credit,
certain depreciation attributes, and a share of
cash flows, along with (2) Project Equity investors
such as National Grid, which receive a share of
cash flows from the funds. In 2023, proceeds
from NCI and proceeds from pass-through and
other financial obligations averaged ~$1.81 per
watt.

35
Metric Sensitivity Tables

➔ Net Earning Assets excludes other assets, such as Inventory ($353m as of 2Q24) and a portion of systems currently under construction but not yet recognized as deployed and therefore not yet
reflected in Gross Earning Assets.
➔ Existing assets are financed with fixed-rate debt or floating-rate debt where the vast majority of the base rate exposure is hedged with interest rate swaps. As such, adjusting the discount rate
applied to the entire fleet of existing assets with current financing costs applicable to new asset originations is not appropriate. Net derivative assets (total derivative assets less total derivative
liabilities) totaled $259 million at June 30, 2024 for $3.6 billion in notional amount of interest rate swaps.

See Appendix for glossary of terms and accompanying notes.

36
 Strong service transfer performance
When customers move or their service is otherwise transferred to a new homeowner, Sunrun has
maintained ~100% of expected contract value

COMPLETED SERVICE TRANSFERS REASONS FOR SERVICE TRANSFER

& NET SUBSCRIBER VALUE RECOVERY BY YEAR
(Legacy Sunrun data only)

Transfer Year

Net Subscriber
Value Recovery(2)

Zillow conducted a study in 2019 and found that solar increases the Data includes transfers related to Vivint Solar systems after 12/31/2021. Prior to this
date, Vivint Solar completed an additional 35,553 services transfers with an average
average sales price of a home(1) NPV recovery rate of 99%.

(1) Zillow (April, 2019). Homes With Solar Panels Sell for 4.1% More.
(2) Sunrun fleet-wide data as of December 31, 2023 for customer agreements with monthly payments only. The sum of the percentage columns and the balance columns may not equal 100.0% or the total, as applicable, due to
rounding. Excludes new home transfers, transfers that occurred prior to PTO and prepaid contracts. Includes completed service transfers with a reduction to the PPA or lease rate, and with a recovery rate less than 100%. Recovery
percentage is equal to the (i) the sum of (a) the remaining customer agreement cash flows after the service transfer discounted at 6% and (b) prepayments received in connection with the service transfer, divided by (ii) the remaining
customer agreement cash flows before the service transfer discounted at 6%.
37
 Residential Solar is ~5% of the market today
Residential solar market
size is massive and
underpenetrated today

● 88 million U.S. single family homes today(1)

● 4.5 million residential solar customers across the
industry(2)
● 752,000 solar customers added in 2023(2)
Projected ~18% market penetration in 2032, even
after 10 years of ~16% annual industry growth
The penetration rate declines at current levels as ~900k homes are
built annually in the U.S.(3)

In May 2018, The California Energy Commission passed rules that

effectively mandate that new homes have solar panels starting in
2020. California builds approximately 110,000 new homes
annually. For context, there were approximately 240,000 new
residential solar customers added in California during 2022.(2)

(1) Housing stock estimate is based on US Census 2021 American Community Survey Estimates by State using
occupied single-unit housing using average state occupancy estimates.
(2) EIA Form 861M Residential PV Customers (through February 2024).
(3) U.S. Census Bureau 2019 New Residential Construction statistics. 903,000 new single family home
completions in 2019.

MARKET
<3% 3%-20% >20%
PENETRATION 38
Modeling residential solar
key drivers of project cash flows
Sun, utility rates, site specifics, costs
(Average Sunhours)

SUN RESOURCE VARIES

The economics of a system are driven by how much energy the solar system
produces (a function of the site conditions and sunshine), how much Sunrun charges
for the energy (which is driven by the prevailing utility rates and local incentives which
vary significantly across the country), and the cost to build systems, which also varies
by location.
A unit of energy we bill for is called a kilowatt hour, which is 1000 watts of power for 1
hour, abbreviated KWhr. We typically offer Power Purchase Agreements (PPAs) or
Leases which stipulate the effective rate we charge per KWhr of energy the solar
system produces. Source: ACORE, 2017
Outlook on Renewable
The amount of energy a solar system produces varies by how much sunshine the area Energy in America
receives, the angle of the panels on the roof, and any nearby obstructions which may
cause shading. The productivity of a system is measured in Capacity Utilization Factor
(%) or colloquially as “Sunhours per year”, both of which measure the amount of time
a system is fully productive, on average, throughout a year. We present these
utilization metrics in terms of Alternating Current (AC), which is the type of power INCUMBENT POWER PRICES VARY
Price per KWhr, State Average Price Presented
homeowners consume, and already considers the transition of the energy from Direct
Note: Rates also vary within the same state by utility and customer tariff
Current (DC) to AC through an inverter.
The unlevered returns we generate are a function of (1) the PPA price, which is
typically initially set at a discount to prevailing utility power prices, (2) the upfront cost
to construct the system, including module, inverter, racking, installation labor,
permitting and sales expense, which can vary by region, and (3) the amount of energy
the system produces, which is a function of the geographic location and associated
sunshine, along with site-specific factors such as roof angles and nearby shading.
For example, a 7 kilowatts sized system (7,000 watts of capacity) could produce about
10,500 KWhrs in Northern California, based on Sunhours of ~1,500/yr (a Capacity <$0.12
Utilization Factor of 17%). $0.12-$0.15

>$0.15

Source: Energy Information Agency Form 861M, 2023 YTD Average Price of Residential
Electricity (data through May 2023).
39
Glossary
Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Net Subscriber Value represents Subscriber Value less Creation Cost.
Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final
inspection, or (ii) in the case of certain system installations by our partners, for which we have accrued at least Total Value Generated represents Net Subscriber Value multiplied by Subscriber Additions.
80% of the expected project cost (inclusive of acquisitions of installed systems).
Customers represent the cumulative number of Deployments, from the company’s inception through the
Customer Agreements refer to, collectively, solar or storage power purchase agreements and leases. measurement date.

Subscriber Additions represent the number of Deployments in the period that are subject to executed Subscribers represent the cumulative number of Customer Agreements for systems that have been
Customer Agreements. recognized as Deployments through the measurement date.

Customer Additions represent the number of Deployments in the period. Networked Solar Energy Capacity represents the aggregate megawatt production capacity of our solar
energy systems that have been recognized as Deployments, from the company’s inception through the
Solar Energy Capacity Installed represents the aggregate megawatt production capacity of our solar energy measurement date.
systems that were recognized as Deployments in the period.
Networked Solar Energy Capacity for Subscribers represents the aggregate megawatt production capacity
Solar Energy Capacity Installed for Subscribers represents the aggregate megawatt production capacity of of our solar energy systems that have been recognized as Deployments, from the company’s inception
our solar energy systems that were recognized as Deployments in the period that are subject to executed through the measurement date, that have been subject to executed Customer Agreements.
Customer Agreements.
Networked Storage Capacity represents the aggregate megawatt hour capacity of our storage systems that
Storage Capacity Installed represents the aggregate megawatt hour capacity of storage systems that were have been recognized as Deployments, from the company’s inception through the measurement date.
recognized as Deployments in the period.
Gross Earning Assets is calculated as Gross Earning Assets Contracted Period plus Gross Earning Assets
Creation Cost represents the sum of certain operating expenses and capital expenditures incurred divided by Renewal Period.
applicable Customer Additions and Subscriber Additions in the period. Creation Cost is comprised of (i)
installation costs, which includes the increase in gross solar energy system assets and the cost of customer Gross Earning Assets Contracted Period represents the present value of the remaining net cash flows
agreement revenue, excluding depreciation expense of fixed solar assets, and operating and maintenance (discounted at 6%) during the initial term of our Customer Agreements as of the measurement date. It is
expenses associated with existing Subscribers, plus (ii) sales and marketing costs, including increases to the calculated as the present value of cash flows (discounted at 6%) that we would receive from Subscribers in
gross capitalized costs to obtain contracts, net of the amortization expense of the costs to obtain contracts, future periods as set forth in Customer Agreements, after deducting expected operating and maintenance
plus (iii) general and administrative costs, and less (iv) the gross profit derived from selling systems to costs, equipment replacements costs, distributions to tax equity partners in consolidated joint venture
customers under sale agreements and Sunrun’s product distribution and lead generation businesses. Creation partnership flip structures, and distributions to project equity investors. We include cash flows we expect to
Cost excludes stock based compensation, amortization of intangibles, and research and development receive in future periods from tax equity partners, government incentive and rebate programs, contracted
expenses, along with other items the company deems to be non-recurring or extraordinary in nature. The sales of solar renewable energy credits, and awarded net cash flows from grid service programs with utilities
gross margin derived from solar energy systems and product sales is included as an offset to Creation Cost or grid operators.
since these sales are ancillary to the overall business model and lowers our overall cost of business. The
sales, marketing, general and administrative costs in Creation Costs is inclusive of sales, marketing, general Gross Earning Assets Renewal Period is the forecasted net present value we would receive upon or
and administrative activities related to the entire business, including solar energy system and product sales. following the expiration of the initial Customer Agreement term but before the 30th anniversary of the system’s
As such, by including the gross margin on solar energy system and product sales as a contra cost, the value activation (either in the form of cash payments during any applicable renewal period or a system purchase at
of all activities of the Company’s segment are represented in the Net Subscriber Value. the end of the initial term), for Subscribers as of the measurement date. We calculate the Gross Earning
Assets Renewal Period amount at the expiration of the initial contract term assuming either a system purchase
Subscriber Value represents the per subscriber value of upfront and future cash flows (discounted at 6%) or a renewal, forecasting only a 30-year customer relationship (although the customer may renew for
from Subscriber Additions in the period, including expected payments from customers as set forth in Customer additional years, or purchase the system), at a contract rate equal to 90% of the customer’s contractual rate in
Agreements, net proceeds from tax equity finance partners, payments from utility incentive and state rebate effect at the end of the initial contract term. After the initial contract term, our Customer Agreements typically
programs, contracted net grid service program cash flows, projected future cash flows from solar energy automatically renew on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing
renewable energy credit sales, less estimated operating and maintenance costs to service the systems and utility power prices.
replace equipment, consistent with estimates by independent engineers, over the initial term of the Customer
Agreements and estimated renewal period. For Customer Agreements with 25 year initial contract terms, a 5 Net Earning Assets represents Gross Earning Assets, plus total cash, less adjusted debt and less
year renewal period is assumed. For a 20 year initial contract term, a 10 year renewal period is assumed. In pass-through financing obligations, as of the same measurement date. Debt is adjusted to exclude a pro-rata
all instances, we assume a 30-year customer relationship, although the customer may renew for additional share of non-recourse debt associated with funds with project equity structures along with debt associated
years, or purchase the system. with the company’s ITC safe harboring facility. Because estimated cash distributions to our project equity
partners are deducted from Gross Earning Assets, a proportional share of the corresponding project level
non-recourse debt is deducted from Net Earning Assets, as such debt would be serviced from cash flows
already excluded from Gross Earning Assets.

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Glossary (continued)
Cash Generation is calculated using the change in our unrestricted cash balance from our consolidated
balance sheet, less net proceeds (or plus net repayments) from all recourse debt (inclusive of convertible
debt), and less any primary equity issuances or net proceeds derived from employee stock award activity (or
plus any stock buybacks or dividends paid to common stockholders) as presented on the Company’s
consolidated statement of cash flows. The Company expects to continue to raise tax equity and asset-level
non-recourse debt to fund growth, and as such, these sources of cash are included in the definition of Cash
Generation. Cash Generation also excludes long-term asset or business divestitures and equity investments in
external non-consolidated businesses (or less dividends or distributions received in connection with such
equity investments).

Annual Recurring Revenue represents revenue arising from Customer Agreements over the following twelve
months for Subscribers that have met initial revenue recognition criteria as of the measurement date.

Average Contract Life Remaining represents the average number of years remaining in the initial term of
Customer Agreements for Subscribers that have met revenue recognition criteria as of the measurement date.

Households Served in Low-Income Multifamily Properties represent the number of individual rental units
served in low-income multi-family properties from shared solar energy systems deployed by Sunrun.
Households are counted when the solar energy system has interconnected with the grid, which may differ from
Deployment recognition criteria.

Positive Environmental Impact from Customers represents the estimated reduction in carbon emissions as
a result of energy produced from our Networked Solar Energy Capacity over the trailing twelve months. The
figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the
Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool
from the EPA, using the current-year avoided emission factor for distributed resources on a state by state
basis. The environmental impact is estimated based on the system, regardless of whether or not Sunrun
continues to own the system or any associated renewable energy credits.

Positive Expected Lifetime Environmental Impact from Customer Additions represents the estimated
reduction in carbon emissions over thirty years as a result of energy produced from solar energy systems that
were recognized as Deployments in the period. The figure is presented in millions of metric tons of avoided
carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is
calculated using the most recent published tool from the EPA, using the current-year avoided emission factor
for distributed resources on a state by state basis, leveraging our estimated production figures for such
systems, which degrade over time, and is extrapolated for 30 years. The environmental impact is estimated
based on the system, regardless of whether or not Sunrun continues to own the system or any associated
renewable energy credits.

Total Cash represents the total of the restricted cash balance and unrestricted cash balance from our
consolidated balance sheet.

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Investor Relations
investors.sunrun.com
415-373-5206
[email protected]